The trial balance of Sage Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
|SAGE FASHION CENTER
NOVEMBER 30, 2017
|Sales Returns and Allowances||4,200|
|Cost of Goods Sold||495,400|
|Salaries and Wages Expense||138,840|
|Maintenance and Repairs Expense||12,100|
|1.||Supplies on hand totaled $4,620.|
|2.||Depreciation is $16,590 on the equipment.|
|3.||Interest of $11,470 is accrued on notes payable at November 30.|
|1.||Salaries expense is 70% selling and 30% administrative.|
|2.||Rent expense and utilities expenses are 80% selling and 20% administrative.|
|3.||$30,000 of notes payable are due for payment next year.|
|Maintenance and repairs expense is 100% administrative.
PART 1: Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Part 2: Prepare an adjusted trial balance.
Part 3: Prepare a multiple-step income statement for the year. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Part 4: Prepare retained earnings statement for the year.
Part 5: Prepare a classified balance sheet as of November 30, 2017. (List current assets in order of liquidity.)
Part 6: Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)